What is the WACC?

The corporate tax rate is 35 percent and the company currently has 1,000,000 shares of stock outstanding at a current price of $15. The company also has 50,000 bonds outstanding, with a current price of $985. The bonds pay interest semi-annually at the coupon rate is 6%. The bonds have a par value of $1,000 and will mature in twenty years. Economic life of project in years. Price of New Equipment Fixed Costs Salvage value of New Equipment Effect on NWC: First Year Revenues Variable Costs Marginal Tax Rate Growth Rate 4 $195,000 $10,000 $25,000 $20,000 $150,000 55.0% 35.0% 20.0% The corporate tax rate is 35 percent and the company currently has 1,000,000 shares of stock outstanding at a current price of $15. The company also has 50,000 bonds outstanding, with a current price of $985. The bonds pay interest semi-annually at the coupon rate is 6%. The bonds have a par value of $1,000 and will mature in twenty years. Economic life of project in years. Price of New Equipment Fixed Costs Salvage value of New Equipment Effect on NWC: First Year Revenues Variable Costs Marginal Tax Rate Growth Rate 4 $195,000 $10,000 $25,000 $20,000 $150,000 55.0% 35.0% 20.0%